Canada and UAE Enter Deeper Strategic Partnership with Focus on Trade, AI, and Investment

Abu Dhabi | EcoPulse24

Bilateral relations between Canada and the United Arab Emirates (UAE) have gained significant momentum in 2024 and 2025, entering a deeper and broader phase of partnership. This development covers trade, investment, energy, artificial intelligence, and regional security, coinciding with the 50th anniversary of diplomatic relations between the two countries.

A pivotal moment was marked by Canadian Prime Minister Mark Carney's official visit to the UAE on November 20, 2025 - the first such visit by a Canadian prime minister in over four decades. During the visit, Carney and UAE President Sheikh Mohamed bin Zayed Al Nahyan issued a joint statement reaffirming their commitment to expanding cooperation in trade, investment, food and energy security, innovation, and regional stability.

The Canada-UAE relationship is built on advanced institutional frameworks, most notably the Memorandum of Understanding for the Joint Cooperation Committee signed in July 2022, which established the first comprehensive formal framework for deepening collaboration in defense, security, agriculture, energy, and trade. An earlier development cooperation memorandum signed in 2014 further supported shared goals in sustainable development, governance, and human rights.

In October 2025, the two sides signed a memorandum of understanding in artificial intelligence and data centers, leveraging their technological leadership and opening new avenues for investment and knowledge exchange in advanced digital sectors.

On the economic front, bilateral trade continued its upward trend, with goods trade between the two countries reaching approximately $3.4 billion in 2024. Canadian exports accounted for $2.6 billion, a 24% year-on-year increase, while imports from the UAE stood at around $800 million, reflecting a sustainable growth trajectory.

Canada's main exports to the UAE included aerospace products, vehicles, and vegetables, while imports from the UAE were dominated by iron, steel, and aluminum. In 2023, bilateral trade in commercial services totaled $388 million.

With Abu Dhabi and Dubai contributing about 90% of the UAE's GDP, the country stands as one of the region’s most open economies, supported by specialized financial zones such as Abu Dhabi Global Market and Dubai International Financial Centre - making it an attractive destination for Canadian businesses.

The UAE manages sovereign wealth funds exceeding $2 trillion in assets, used to accelerate economic diversification away from fossil fuels. These funds have made significant investments in Canada, particularly in energy, infrastructure, technology, and healthcare.

During the November 2025 visit, both parties signed the Foreign Investment Promotion and Protection Agreement (FIPA) to provide a more stable and transparent environment for investors and support long-term partnerships and high-value job creation. They also announced plans to launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

Cooperation also extends to humanitarian efforts, notably Afghan resettlement, as well as security partnerships in defense, policing, and space, supported by ongoing coordination through joint consular committees.

On the international stage, Canada and the UAE collaborate within multilateral organizations such as the United Nations, World Trade Organization, International Civil Aviation Organization, and UNESCO, strengthening their joint engagement on global issues.

Currently, about 60,000 Canadians reside in the UAE, with Canada maintaining an embassy in Abu Dhabi and a consulate in Dubai, while the UAE has an embassy in Ottawa - reflecting the depth of economic and humanitarian ties between the two nations.